| American Motors Corporation |
Article Index for American |
Website Links For American |
Information AboutAmerican Motors Corporation |
|
American Motors Corporation (AMC) was an American automobile company formed on January 14 , 1954 by the merger of the Nash-Kelvinator Corporation and the Hudson Motor Car Company . At the time, it was the largest corporate merger in U.S. history, valued at US$ 198 million ($1.44 billion in 2006 dollars). Declining sales and a fiercely competitive auto market in the United States forced AMC to seek a partner in the late 1970s, which led to a tie-up with France's Renault in 1979. The arrangement lasted until March 2 , 1987 , when American Motors was purchased by the Chrysler Corporation , which discontinued the use of AMC and Renault brand names in the United States. The Jeep line was continued, as well as some of the models under the Eagle marque. FORMATION In January 1954, Nash-Kelvinator Corporation acquired the Hudson Motor Car Company (in what was called a Merger ) to form American Motors. When the merger was completed in the spring of 1954, Hudson's CEO, A.E. Barit was retained as a Consultant and given a seat on the Board Of Directors in the new company, and Nash's George W. Mason was made President and CEO of the new concern. Mason, the architect of the merger, believed that the only chance of survival for America's remaining independent automakers was for them to join forces in one large, multibrand auto giant, able to challenge the "Big Three" - General Motors , Ford , and Chrysler - as an equal. Mason also entered into informal discussions with James J. Nance of Packard to outline his Strategic Vision . Nance saw value in the concept, and interim plans were made for AMC to buy Packard Ultramatic automatic transmissions and Packard V8 Engine s for certain AMC products. Packard did acquire Studebaker as planned, in 1954, and the resulting Studebaker-Packard Corporation (S-P) cooperated with AMC by making the new 308 cubic inch (5.1 L) Packard V8 engine and Packard's Ultramatic automatic transmission available to AMC, for its Nash Ambassador and Hudson Hornet models. However, Mason's death in 1954 placed George W. Romney at the helm of AMC and one of Romney's first official statements a week after Mason's death, as reported in October 25 , 1954 edition of Time Magazine , was to announce that there would be no merger talks with Studebaker-Packard ''"at this time or in the foreseeable future."'' This announcement was most likely made in response to S-P President James Nance's refusal to consider any merger proposal in which he could not be in the top command position. This is considered to have been a matter of personalities, as Mason and Nance had formerly been competitors as heads of the Kelvinator and Hotpoint appliance companies, respectively. Romney agreed with Mason's commitment to buy S-P products; however, the understanding between Mason and Nance had been that S-P would endeavor to purchase parts from American Motors in return. S-P never lived up to its end of the gentleman's agreement. Consequently, Romney felt the Packard engines and transmissions were too expensive, and ordered AMC engineers to begin development of the company's own V8 Engine . For better or worse, both would have to go it alone in the ever more competitive automobile market. By 1964, Studebaker production in the United States had ended (its Canadian operations closed in 1966) leaving only the Big Three, as well as the much smaller AMC, Kaiser Jeep , International Harvester, and the tiny Avanti Motor Company and Checker Motors remaining in the North American auto business. PRODUCT DEVELOPMENT IN THE 1950S .]] American Motors combined the Nash and the Hudson product lines under a common manufacturing strategy, while retaining both Nash and Hudson established dealer networks, beginning in 1955. The fast-selling Rambler model was sold under both the Nash and Hudson labels in 1955 and 1956, eventually becoming a marque in its own right, and the mainstay of the company. These Badge-engineered Ramblers, along with similar Metropolitans, were identical, aside from hubcaps, nameplates, and a few other minor trim details. The pre-existing full-size Nash product line was continued and the Nash Statesman and Ambassador were heavily restyled to become the "new" Hudson Wasp and Hudson Hornet . The two cars, while sharing a common body shell, were quite distinct, perhaps even more than they should have been. They were at least as different from one another as Chevrolet and Pontiac, and in some ways more so. Hudsons and Nashes each used their own engines as they had previously: the Hudson Hornet continued to offer the famous 308 in³ (5 L) six that had been America's stock car racing champion a short time before, while the Wasp now used the engine of the former Hudson Jet. The Nash Ambassador and Statesman continued with their well-known overhead valve and L-head sixes, respectively. Hudson and Nash cars had different front suspensions, and the only sheet metal panels that interchanged between the two were the trunk lids. Even the rear window glass did not interchange. Dash panels, and even the braking systems were different. As noted earlier, the same Packard (and later American Motors) designed V8 engines were available in both Hudson Hornet and Wasp, and their Nash counterparts. Hudson aficionados disliked the soft handling and ride of the derisively nicknamed "Hash" models, but the cars did offer an improved ride and much better driver and passenger visibility, not to mention greater fuel economy due to the lighter weight of the Nash unitized body. For the 1958 model year, the Nash and Hudson brands were dropped in favor of the popular Rambler name, which now became a marque in its own right. The slow-selling, British-built Nash Metropolitan subcompact became its own standalone brand and continued on for a few more years, sharing showroom space with Rambler, finally being dropped after 1962. The prototype 1958 Nash Ambassador / Hudson Hornet , built on a stretched Rambler platform, was renamed at the last minute to "Ambassador by Rambler". To round out the model line, American Motors did something totally unheard of and never successfully duplicated to this day - they reintroduced the old 1955, 100 inch (2440 mm) wheelbase Nash Rambler as the new Rambler American with only a few modifications. This gave Rambler a compact lineup with 100 inch (American), 108 inch or 2743 mm ( Rambler Six and Rebel V8 ), as well as rhe 117 inch or 2972 mm (Ambassador) wheelbase vehicles. Under the leadership of George W. Romney, Rambler automobiles were among the best-known products among consumers. This was because Romney's vision focused solely on the compact car, a fuel-efficient vehicle twenty years before there was a real need for them.Meyers, Gerald C. (1986) When it hits the fan: Managing the nine crises of business. Houghton Mifflin ISBN 0-395-41171-8. Thus, while the "Big Three" were introducing ever larger cars AMC undertook a "dinosaur fighter" strategy. Romney became one of the first-high profile media savvy business executives. Moreover, AMC established two core Strategic Factors : (1) the use of shared components in AMC products and (2) a resistance to follow the restyling race of the Big Three. AMC could focus on cost controls and provide consumers a better value. Rambler became a synonym for solid economy cars. CHANGING FOCUS IN THE 1960S In an effort to stay competitive, American Motors produced a wide range of products during the 1960s. In the early part of the decade, sales were strong. In 1961, Ramblers ranked in third place among domestic automobile sales. Romney's Strategic Focus was very successful during the early 1960s as reflected in the firm's healthy profits year after year. The company became completely debt-free. However, in 1962, Romney resigned to run for Governor of Michigan . His replacement was Roy Abernethy , AMC's successful sales executive. Abernethy believed that AMC's reputation of building reliable economical cars could be translated into a new strategy that could follow AMC buyers as they traded up into larger, more expense vehicles. The first cars bearing his signature were the 1965 models. These were a longer Ambassador series and new Convertibles for the larger models. During mid-year a Fastback , called the Marlin , was added. Rather than competing directly with Ford's new Pony-car , AMC's "family-sized" car emphasized Personal-luxury . Abernethy also called for the de-emphasis of the Rambler brand. The 1966 Marlin and Ambassador lost their Rambler nameplates, and were badged as "American Motors" products. The new models shared fewer parts among each other and were more expensive to build. The continuing quest to match the "Big Three" with annual styling changes required large expenditures. A new line of redesigned cars in the Full and Mid-sized markets was launched in the fall of 1966. The cars won acclaim for their fluid styling, but Abernathy's ideas did not work as they only confused the firm's core customers. Sales of the new Rebel and Ambassador models dropped after their introduction. There were quality control problems, as well as persistent rumors of the company's demise because of its precarious cash flow. Abernethy was ousted from AMC and damage control fell to the new CEO, Roy D. Chapin Jr. (son of Hudson Motors founder Roy D. Chapin ). He quickly instituted changes to AMC's offerings and tried to regain market share. Chapin's first decision was to cut the price of the Rambler to within $200 of the basic Volkswagen Beetle . Innovative Marketing ideas included making Air Conditioning standard on all 1968 Ambassador models (available as a delete option). This made AMC the first U.S. automaker to make air conditioning standard equipment on its cars, beating out all other makes; including luxury makes Lincoln , Imperial , and Cadillac . The company also introduced exciting entries for the decade's Muscle Car boom, most notably the AMX ; while the Javelin served as the company's entrant into the sporty "pony car" market created by the Ford Mustang . Additional operating cash was derived in 1968 through the sale of Kelvinator Appliance, once one of the firm's core operating units. The Rambler brand was completely dropped after the 1969 model year in the U.S. and Canada, although it continued to be used in several overseas markets as either a model or brand name, with the last use in Mexico in 1983. From 1970, "AMC" was the brand used for all American Motors passenger cars; and all vehicles from that date bore the AMC name and the new corporate logo. However, the names "American Motors" and "AMC" were used interchangeably in corporate literature well into the 1980s. The branding issue was further complicated when the company's All-wheel Drive passenger cars were initially marketed as the "American Eagle". Chapin also expanded American Motors product line in 1970, through the purchase of the Kaiser-Jeep Corporation (formerly Willys-Overland ) from Kaiser Industries . This added the iconic Jeep brand of light trucks and SUVs, as well as Kaiser-Jeep's lucrative government contracts - notably the M151 MUTT line of military Jeeps and the DJ-Series Postal Jeeps. AMC also expanded its international network. The military and special products business was reconstituted as American Motors General Products Division, later reorganized as AM General . 1970S DEVELOPMENTS The 1970s started on a high note. In 1970, all passenger cars were consolidated under one distinct brand identity. It also marked the debut of the AMC Hornet range of compact cars. American Motors was an innovator in using the same platform for a variety of models, Thus, the new Hornet platform was used to create the first American-built subcompact - the AMC Gremlin . It was introduced on April 1 , 1970 . The Hornet went on to become American Motors' best-selling passenger car since the Rambler Classic, with more than 860,000 units sold before the end of production in 1977. The Gremlin wasn't far behind, with more than 670,000 sold from 1970-78. The successful product launches of the Hornet and Gremlin convinced AMC to continue with new product developments. The new mid-sized AMC Matador arrived for 1971 as a replacement for the Rebel. AMC played on the lack of recognition of the name by using the advertising line "What's a Matador?" Starting in 1974, the Matador evolved into two distinct vehicles - conventionally boxy sedans and station wagons, and a radically styled two-door called the Matador Coupe. After 1975, the Matador sedan and wagon took the place of the discontinued Ambassador as AMC's flagship model. Nash and AMC made the Ambassador from 1927 to 1974, the longest used model name of any AMC product. Matador Coupe sales never lived up to expectations and its unique design meant it shared few components other than the suspension, drive train, some trim, and interior parts with the sedans. Most of the tooling for the sedans and wagons dated back to the 1967 Rambler Rebel and had long been paid for. Nevertheless, by 1978, sales of large-sized cars fell with the rising gasoline prices, and all Matador models were discontinued. The AMC Pacer , introduced in 1975, was an innovative gamble and another well-intentioned entry into the market AMC seemed to know best. The development of the Pacer prior to its 1975 introduction coincided with two developments in U.S. Federal passenger auto laws. The first, the reduction in allowed passenger auto engine Emissions would have been met by the use of the Wankel type engine whose exterior compactness allowed for extensive engine bay emission control equipment. The second, increases in U.S. passenger Auto Safety laws was met by the designed-in safety features such as internal door beams. However, these safety features, the wide exterior and the extensive window glass caused the Pacer to be very heavy for its exterior length. Billed as "the first wide small car", the Pacer was an attempt to build a subcompact car with the comfort of a full-sized one. To this end, the car was as wide as a typical Cadillac of the day, yet no longer than the Gremlin. This provided the same front seat space as a luxury car within the length of a typical compact. The Pacer was also unconventional with its bulbous, wrap around window glass, accounting for 35% of the car's surface area, thus eliminating blind spots. Among other unique features, the passenger door was four inches longer than the driver's door, to facilitate curbside back seat access. American Motors planned to use a General Motors -built Wankel Rotary Engine for the Pacer. However, with the advent of the Arab Oil Embargo energy crisis of 1973, GM promptly aborted their rotary engine development program due to, among others factors, the excessive fuel consumption of the Wankel engine compared to conventional piston engines with the same power output. Thus, AMC was stuck with a car that had no engine. They had to shoe-horn their own existing 232 and 258 in³ (4.2 L) AMC Straight-6 Engine s into the Pacer instead. The sixes offered better fuel economy than a rotary engine would have, yet resulted in relatively poor fuel economy in light of the new focus on energy efficiency. In addition, the Pacer was all-new except for the drive train, sharing virtually no components with other AMC cars. This made it expensive to produce, and when sales took a steep fall after the first two years, the manufacturing cost per vehicle skyrocketed. Two attempts to broaden the Pacer's appeal were made: an unusual station wagon variant was introduced, and the front end was re-styled with a raised-center hood in order to provide space to install AMC's V-8 engine. The failure of the Pacer and the Matador Coupe are often used as the reasons for AMC's ultimate demise, as their development and production costs drained corporate accounts of much needed capital which could have been used to update and modernize the already popular Hornet and Gremlin lines. As the decade wound down, the company found itself with aged products, unable to compete in a very hotly contested market, and in the midst of a growing energy crisis. In 1977, the company introduced a new front end design for the Gremlin, revamped the rear hatch and fascia, and a more fuel efficient US-produced 121 in³ (2.0 L) 4 cylinder Volkswagen designed Audi engine which AMC produced for a short period under the AMC name (see below under engines). However, the cost of the engine was high, so AMC - in a curious move - left the cheaper-to-build 232 in³ as standard equipment. In the midst of a gas crisis, AMC had to have a fuel-thrifty model for dealers to sell. Another major change in the company's lineup for 1977 was the reemergence of the AMX nameplate. Little more than a sports appearance package offered on the Hornet Hatchback , it came standard with AMC's 258 in³ inline-6 mated to either a 4-speed manual transmission or 3-speed automatic. The AMC 304 in³ V8 was optional, but only available with the automatic transmission. The Pacer wagon debuted in 1977, as well. All Matadors received a host of standard equipment that was formerly optional (e.g. power steering, automatic transmission), thus negating the need for the now-defunct Brougham package. The Matador coupe received a new landau vinyl roof treatment with opera windows as optional equipment, and a new Harvest Beige/Sand Tan two-tone paint scheme for top-line Barcelonas. For 1978, the Hornet Platform was redesigned and renamed the AMC Concord . The front fenders and related panels were borrowed from the new Gremlin design with very minor changes. The result was a car that looked very different and fresh compared to the aging Hornet. AMC aimed at the emerging "premium compact" market segment with the Concord, with special attention to ride and handling, and including a long list of standard equipment, tasteful trim, and interior luxury. Gremlins picked up a new instrument panel borrowed from the Concord, as well as a Hornet AMX-inspired GT sports appearance package, and a new striping treatment for X models. The AMC Pacer received a modified hood with a raised center section designed so that the engine bay would accommodate a V-8 engine. A new Mercedes-type crosshatch grille was seen at the front, which reflected the hood's new shape. The former Pacer X package gave way to a Sport package, as well. Meanwhile, sales of the Matador Coupe, sedan and wagon had been sliding steadily, and the decision was made to eliminate the 304 in³ V8 engine from the options list - leaving only the 258 in³ Inline-6 (standard on coupes and sedans) and the 360 in³ V8 (optional on coupes and sedans, standard on wagons) as the only available engines. The two-tone Barcelona luxury package became available on Matador sedans for the first time, while the Barcelona coupes added an Autumn Red/Claret two-tone paint scheme option. The changes were not enough to keep interest in the vehicle, so AMC trimmed Matador from the lineup at the end of the model year after a final run of 10,576 units. In 1979, the Spirit sedan replaced the Gremlin. An ingenious redesign of the rear panels created a fastback version of the car, which AMC dubbed the Spirit Liftback . The Liftback quickly proved to be a successful line extension. The Pacer remained largely unchanged - only a new leather-line Limited trim line was added - and rapidly-declining sales indicated the end was near. The last Pacer would be produced in December 1979, for the 1980 season. Concords picked up new quad rectangular headlights, a new chrome vertical-bar waterfall grille, and hatchbacks (in their final season) became available in DL trim. On May 1, AMC celebrated the 25th anniversary of the Nash-Hudson merger by releasing "Silver Anniversary" editions of the AMC Concord and Jeep CJ in two-tone silver. Jeeps at this point were making around 50% of the company's sales and most of its profits; and a new small, fuel-efficient car from Renault - courtesy of a new deal |
|
|